Estimation of rates of return on social protection: Making the case for non-contributory social transfers in Cambodia
Andres Mideros Mora, Franziska Gassmann & Pierre Mohnen
#2013-063
This study estimates the rates of return (RoR) of non-contributory
social transfer programmes in Cambodia using household data and going
beyond standard cost efficiency analyses by developing a dynamic micro
simulation. It shows that social protection promotes equitable economic
growth by enhancing human development and fostering economic performance
at the micro level. A positive RoR is achieved after 12 periods and can
reach between 12 per cent and 15 per cent after 20 periods. This study
shows that micro simulation models can be extended in order to analyse
the economic returns on social protection.
Keywords: social protection, non-contributory social transfers,
microsimulation, rate of return,
JEL classification: C15, H00, I38, O15